Dec 20, Colombo: Sri Lanka government sources say that it is considering to establish a mechanism to monitor the microfinance companies operating in the island.
At present, there is no such mechanism to monitor these institutes. The government's plans to monitor the micro finance sector are yet to be revealed.
A number of organizations including banks, finance companies, cooperatives, and NGOs are engaged in the country's microfinance sector.
However, the government sources say that the complaints regarding irregularities in this sector are a minimum, although according to the financial experts the interest rates in microfinance sector is very high in most cases.